social security stmt

[TAX4US]

Here is what I have: Box 3 benefits paid 9685.00
box 4 benefits repaid 2014 10420.00
Box 5 Net benefits 2014 (735)

Description of box 3 pd by check 5549.40
Deductions for work 3519.00
Federal Tax wh 616.60
Total Additions 9685.00

Description of Box 4 Deductions for work 3519.00
Other repayments 6901.00
Benefits repaid in 2014 10420.00

Tp received benefits in 2013 10056. Taxable amount was 8548.

How would you go about handling this in 2014. TP did tell me they kept the 3519 and he sent them a check in July for the 6901

[Roland Slugg]

None of the benefits he received in 2014 is taxable. Since the excess benefits he repaid, $735, were taxable on his 2013 return, that amount can be deducted on his 2014 return as an itemized deduction on Schedule A. Since the amount is less than $3,000, it is subject to the 2% floor for certain miscellaneous itemized deductions. (If the excess amount had been more than $3,000 he could either: (A) deduct it on Schedule A, not subject to the 2% haircut, or (B) take a credit on F-1040 equal to the tax paid in the earlier year(s) on the repaid amount. The credit would go on F-1040, line 73.)

The above situation is covered in IRS Pub 915, on page 15.